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SOCIETY FOR PROMOTION OF COMMUNITY STANDARDS INC.

David Ian Henderson: Probe into collapse of Hendo’s failed Property Ventures Ltd

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Property Ventures Ltd (PVL) was a development and investment company founded by Dolf de Roos and led by Christchurch-based property developer Dave Henderson. David Ian Henderson was adjudicated as a bankrupt in the Christchurch High Court on 29 November 2010 and remains a bankrupt under that order. He was to have appeared before the Christchurch High Court on 9 June 2014 for public examination of his activities whilst a bankrupt, but that “has been put on hold after the Christchurch businessman refused to hand over documents he was asked to surrender. A judge ruled that emails between Henderson and several of his business associates had to be provided to investigators so they could be considered at a three-day High Court hearing, scheduled to begin on June 9.” (The Press 29/05/14).

PVL was placed into receivership on 5 March 2010 owing $69 million and then placed into liquidation on 27 July 2010. One of its many subsidiaries – Park Trustee Company Ltd – was put into liquidation on 19 June 2012.

In May 2005 PVL attempted to raise $52.5 million from the New Zealand public with an offer of $1.75 convertible notes, without much success. Those few who did subscribe were subject to a trust arrangement with Covenant Trustee Company Limited. PVL then went further afield seeking to woo overseas investors to this offer, this time listing a PVL subsidiary – Park Trustee Company – as trustee on its investment statements.

A subsequent probe into the activities of PVL commenced by the Securities Commission in 2007 following complaints from overseas investors over non-payment of interest, raised alarms over the role of the related party trustee – Park Trustee Company  – in its apparent failure to protect overseas investors. The Commission expressed concern that the PVL investment statements may have been misleading – a potential criminal breach of the Securities Act, which does cover some aspects of overseas issues.

The trust deed that bound the trustee (Covenant Trustee Company) to protect NZ investors, allowed for PVL to withhold interest payments to investors if doing so would make it (PVL) insolvent or breach other debt covenants, but non-payment would not count as a default. With such dubious terms, it is not surprising that few New Zealanders chose to invest in PVL.

Park Trustee Company Ltd [PTCL) was incorporated on 20 October 2004 under the name “Property Ventures Trustee Company Ltd” (PVTCL) with its sole shareholder being Property Ventures Ltd [PVL]). Dave Henderson, who was a director of PVL at this time (he was appointed on 6/11/02), was appointed sole founding director of PVTCL on 20 October 2004 and he was soon replaced by sole director John Edward Butler just 13 days later on 2 November 2004. On the next day, 3 November 2004, Austin John Forbes was appointed as a second director of PVTCL (record filed 4/11/04). [Read more…]

David Ian Henderson – a two-time bankrupt accuses Liquidator of conduct breaches

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David (Dave) Ian Henderson, twice-bankrupt high-profile Christchurch property developer, and his business associate Ian Bruce Hyndman, appear to have been behind a Notice in the National Business Review (NBR) and one in the NZ Herald (22/05/13) that ran last year, apparently seeking “information” on chartered accountant Robert Bruce Walker, liquidator of Property Ventures Ltd (in receivership and liquidation), the parent company of interconnected companies owned or controlled by Henderson. Henderson was behind the failed $2 billion Five Mile town development at State Highway 6, Queenstown, near the Queenstown Events Centre, colloquially known as “Hendo’s Hole.

As sailors know, it is important at sea to avoid peeing to windward. The blow back can be very unpleasant. So can the result of trying to gather ‘dirt’ and throw it at a person and make it stick, when a very strong gale is opposing the thrower.

Dave Henderson who was bankrupted in 1996 and discharged in 1999, was then bankrupted again on November 29, 2010, the latter one of the largest bankruptcies in New Zealand’s history. By his own account he had gross personal debts of about $165m and $86m after the sale of secured assets. The debts come mainly from personal guarantees he had given on loans to his companies.

Bankruptcies are managed by a Crown authority called the Official Assignee (OA) and normally last for three years. Henderson remains an undischarged bankrupt because the OA filed a notice of objection to Mr Henderson’s discharge, pursuant to s 292 of the Insolvency Act 2006, on 28 November 2013. The OA “strongly suspects that Mr Henderson had entered into, carried on, or taken part in the management or control of businesses during his bankruptcy, contrary to s 149 of the Act. Mr Henderson strongly refutes the Assignee’s suspicions…” (quoted from High Court judgment dated 18 March 2014 – CIV-2010-409-000559 [2014] NZHC 499). [Read more…]